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The Collection Dept. logo0319 rgb

Case Study

A New CFO. A Cash Flow Problem. A System That Finally Worked.

Manufacturing A/R Turnaround

The Challenge

Strong on Paper. Strained in Cash.

A $70M manufacturing company with a 30-year track record looked strong on paper—but cash flow told a different story.

A newly hired CFO, less than a year into the role, quickly saw the gap.

  • Over 1,000 customers, with 200+ carrying past due balances
  • Internal team making collection efforts, but with limited traction
  • No consistent follow-up process or clear ownership
  • Cash flow planning reduced to a weekly scramble

What should have been a manageable A/R function had turned into a reactive cycle, constantly shifting cash just to stay ahead. A referral from their banker led them to The Collection Dept. to take a closer look.

The Solution

Quick Action & A Fix

The work didn’t start with a long ramp-up. It started with action.

Week 1: Get Cash Moving

Direct outreach to past due accounts began, with cash hitting the bank within the first week.

Month 1: Prove What’s Possible

Focused effort on high-impact and >90-day balances resulted in 20% of those balances being collected by the end of the first month. At that point, it was clear that this wasn’t just an effort issue. There were deeper process gaps at play.

Months 2–12: Fix the System and Build the Team

Worked with the team to understand roles, systems, and workflows:

  • Identified breakdowns across credit, billing, payment application, and follow-up
  • Recommended and implemented process improvements
  • Trained internal staff on collection protocol, communication, and reporting
Key Achievements

20%

of >90-day balances collected in the first month

Within 1 Year

average past due reduced from 90 to 6 days
The Results

Stability

After one year, the results were measurable and sustainable.

  • Average invoice reduced to no more than 6 days past due
  • Internal team confidently handling all collections and follow-up
  • Clear reporting and KPIs in place
  • Cash flow stabilized and predictable

The Collection Dept. stepped away, leaving behind a system—and a team—that could manage A/R successfully on their own, now and into the future.

The Takeaway

Not a Band-Aid. A Solution.

This wasn’t a case of a team not trying.

It was a case of good effort without a system to support it.

Once structure, consistency, and accountability were in place:

  • Conversations improved
  • Follow-up became consistent
  • Cash flow followed